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MNB raises rate on one-week depo by 15 bp to 0.75%

The National Bank of Hungary (MNB) raised the rate on its one-week deposit facility by 15 bp to 0.75% at a tender on Thursday, state news wire MTI reports, citing data published by the central bank.

Image by Jessica Fejos

Until now, the rate on the facility has tracked the base rate which stands at 0.6% at present.

When the MNB launched the one-week depo in April, a top policymaker had said that the rate on the instrument would be determined week by week, when the tender announcement is made, adding that market observers would have to follow not only the decisions of the Monetary Council but decisions on the one-week deposit rate, too.

The Monetary Council decided to leave the base rate unchanged at a monthly policy meeting on Tuesday.

MNB allotted HUF 1.925 trillion at the depo tender on Thursday.